A look at risk, regulation, and lock-in in the cloud



How necessary is regulation?

The regulatory landscape regarding cloud computing lock-in is still developing. The European Commission’s response to Google’s grievance against Microsoft reflects a cautious approach. Although Microsoft has responded by unbundling some services, the broader implications for future interventions remain murky. European regulators, for now, seem unperturbed about competition, likely perceiving the market as resilient enough to self-correct over time. I agree.

Whether governmental regulation is a boon or a bane is a matter of perspective. On one side, it could enforce fairness, ensuring that no single provider exploits its position to the detriment of customers. Conversely, excessive regulation might stifle innovation and limit the aggressive evolution that characterizes the tech world.

Also, we should consider that these regulations exist within one or a few countries, and as enterprises are now mostly international firms, that has less of the chilling effect that most expect. If you don’t like a country’s regulations, do business in another country.



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